TDA Market Recap, Sept. 26, 2016

For the week ending Sept. 23, 2016, Texas feeder cattle auctions reported uneven prices, with instances of steady to $10 higher and steady to $8 lower. Texas Weekly Direct reported prices of $2 to $6 higher. Wholesale Beef values were mixed, with Choice Grade gaining $1.26 to close at $186.81 per hundredweight (cwt) and Select Grade losing $0.36 to close at $178.81 per cwt.
For the time period of Sept. 12-18, the USDA NASS Field Office reported that range and pasture conditions in the Southern Low Plains, Lower Valley and South Texas benefited from recent rains. Armyworm infestations were reported in pastures and hayfields around the Cross Timbers, Blacklands and South Texas. Around the state, rainfall increased stock tank levels, but many tanks and ponds remained low. Livestock remained in good condition across the state.
For the time period of Sept. 9-15, exporters reported net sales of 2,300 metric tons (MT) for 2016 — a marketing-year low — and down 89 percent from the previous week and 82 percent from the prior four-week average. Increases reported for Hong Kong, Mexico and South Korea. Exports totaled 13,800 MT, which were down 21 percent from the previous week but up four percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the end of last week, with cash prices gaining 2.00 cents to close at 67.87 cents per pound and October futures prices gaining 0.10 cents to close at 69.08 cents per pound. The USDA NASS Field Office reported that cotton harvest progressed in areas of the Blacklands, Southeast Texas and South Texas, while harvest was delayed in the Trans-Pecos, Edwards Plateau and the Upper Coast. Cotton stalk shredding was active in many parts of the state. Producers in Northeast Texas were preparing for defoliation in the coming week. Net upland sales totaled 197,900 round bales (RB) for 2016-2017, which were up 45 percent from the previous week but down 26 percent from the prior four-week average. Increases reported for Vietnam, China and Thailand. Exports totaled 157,700 RB, which were up 26 percent from the previous week but down 15 percent from the prior four-week average. The primary destinations were Vietnam, Indonesia and Mexico.
Wheat prices were higher at the end of last week, with cash prices gaining $0.06 to close at $3.12 cents per bushel and December futures gaining $0.05 to close at $4.22 per bushel. The USDA NASS Field Office reported that wheat seeding was active in areas of the Plains, Cross Timbers and South Texas. Net sales totaled 561,000 MT for delivery in the 2016-2017 marketing year, which were up 40 percent from the previous week and 30 percent from the prior four-week average. Increases were reported for Mexico, Peru and Brazil. Exports totaled 551,600 MT, which were down 22 percent from the previous week and 12 percent from the prior four-week average. The primary destinations were Brazil, Peru and China.
Corn prices were mixed at the end of last week, with cash prices losing $0.01 to close at $3.32 per bushel and December futures remaining at $3.37 per bushel. The USDA NASS Field Office reported that corn continued to mature in the Northern High Plains, and harvest was nearing completion in the Blacklands and South Central Texas. Net sales for 2016-2017 totaled 921,900 MT . The primary destinations were Mexico, Peru and South Korea. Exports totaled 1,353,100 MT and were reported to Japan, South Korea and Mexico.
Grain sorghum cash prices were down, losing $0.02 to close at $4.88 per cwt. The USDA NASS Field Office reported that sugarcane aphids were a concern of sorghum producers in areas of the High Plains, while harvest was wrapping up in areas of the Southern Low Plains. Net sales totaled 38,700 MT for 2016-2017 and resulted in increases for China and Mexico. Exports totaled 108,000 MT and were reported to China, Indonesia and Mexico.
Milk prices were higher at the close of last week, with September Class III milk futures gaining $0.04 to close at $16.38 per cwt
This week’s U.S. Drought Monitor for Texas showed a slight worsening in drought conditions for the state, with 4.56 percent of Texas still in some stage of drought intensity, up 0.78 percentage points from last week. On the national level, drought conditions worsened slightly as well, with 45.03 percent of the U.S. experiencing abnormal dryness or some degree of drought, up 0.83 percentage points from last week.
Source: TDA Agriculture Market Summary